Sugar Futures---Sugar futures in the March contract is trading higher for the 4th consecutive session after settling last Friday in New York at 12.94 while currently trading at 13.16 up about 22 points for the week continuing it's very low volatility.
Prices continually grind higher on a weekly basis and if you take a look at the daily chart the uptrend line remains intact as I have been recommending 3 bullish positions with an average price of 12.79 if you took that trade continue to place the stop loss under the 10-day low which now stands at 12.62 as an exit strategy as the chart structure is outstanding.
Fundamentally speaking global sugar production concerns fueled fund buying of sugar futures as the Indian Sugar Mills Association (ISMA) on Tuesday reported India's sugar production during Oct 1-Nov 30 fell sharply by -54% y/y to 1.89 MMT. The ISMA on Nov 5 projected India 2019/20 sugar production will fall -19% y/y to 26.85 MMT as sugar prices also have support on strength in crude oil prices which rallied to a 2-1/2 month high Thursday. Higher crude oil prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production, thus curbing sugar supplies.
CHART STRUCTURE: EXCELLENT
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